How Processed Foods Are Subsidized

There’s a common idea out there that people are obese and unhealthy right now because of their inherent laziness and unwillingness to go the gym— I disagree. Before modern times, people were able to just live life in normal shape, without having FitBits and commercial gyms on every corner. There’s a plethora of reasons why we’re the unhealthiest we’ve ever been in history but this article is going to zoom in on one: agricultural subsidies.

Agricultural subsidies are money given to farmers by the U.S. government for things like supplementing farmer’s income, steering agriculture, and managing prices. Right now, the issue is that the powers that be are only using them for a few crops and people. They’ve decided, or been lobbied, to focus funding on the “Big 5” crops: corn, wheat, soybean, cotton, and rice.

These agricultural subsidies artificially lower the price of food, making people more likely to buy the food— processed, industrial agriculture food— that these commodities are the raw input for.

Agricultural Subsidy Totals to the “Big Five” Since 1995:

• Corn: $117 billion

• Wheat: $48 billion

• Soybean: $45 billion

• Cotton: $40 billion

• Rice: $16 billion

from the Environmental Working Group

One of the main uses for that subsidized corn is feed for animals. How do you think these big corporations are producing meat at such a cheap cost? If you would, take a look at the graph below. About 40% of domestically produced corn is going directly to animal feed. That’s how these companies are able to produce meat at such a low cost— with subsidized corn feed. This enables Big Ag companies to easily outprice farmers who are raising animals grass-fed, creating more nutritious foods. Because of this, it’s estimated only about 5% of the cows produced are raised and finished on pasture.

Why are agricultural subsidies so prominent? Why are we funding these commodities? Take a look at the lobbying of the decision makers. In just 2021, over $150 million was spent just on lobbying for agribusiness, vying for more government support.

Source: https://www.opensecrets.org/industries/lobbying.php?ind=A

Because of this system, we’re stuck in a cycle where the companies that benefit from agricultural subsidies are able to generate massive profits, on the taxpayer’s dime, and then use that money to continue lobbying efforts. When unhealthy food is artificially cheap, people are financially incentivized to buy that food that’s going to make them sick and obese.